CALIFORNIA HOMEOWNERS INSURANCE
Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it. Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.
Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.
WHY DO YOU NEED HOMEOWNERS INSURANCE?
It is really all about protecting yourself financially if something unexpected happens to your home or possessions. That's important because chances are your home is likely one of your largest investments.
- If your home was destroyed by fire or damaged by a natural disaster, you'd need money to repair or replace it.
- If a guest in your home is injured, liability protection and medical coverage help pay expenses.
- If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
- If you are still paying for your home, your lender will require insurance.
It is important to know that homeowners insurance is meant to cover unexpected damage, not routine maintenance. Read your policy so you know exactly what's included and what is not. Understanding your coverage will help you make the most of your policy if you should ever need to make a claim. Homeowners insurance policies are labeled based on how much coverage they offer. The three types of homeowners insurance policies are HO-1, HO-2 and HO-3. HO-1 and HO-2 policies are the more affordable options, but they only insure the property, not the individual's belongings, and they carry many exclusions. Most policies are HO-3 policies because they cover both the house and the belongings it contains.
Filing a Claim
If you suffer a loss that is covered under your insurance policy, you will need to file a claim to receive your money. Your insurance company will then send an adjuster to confirm that the value you stated on the claim is accurate. Having pictures or other records to prove the value of your belongings will help you receive all that you are owed. Once the value of the damaged property has been assessed, you will be offered a settlement amount. You can negotiate this if you feel that it is not sufficient to cover your losses.
Cancelations and Nonrenewals
According to the California department of insurance, insurance companies may only cancel an existing homeowners' insurance policy for a few limited reasons after it has been in effect for 60 days. These reasons include nonpayment of premium, fraud, material misrepresentation on your application, or physical changes to your property that increase the risk to the insurer. Notices of non-renewal must be mailed at least 45 days in advance of the policy's expiration date.
EARTHQUAKE INSURANCE
Though no one is required by law to purchase earthquake insurance, the California Earthquake Authority reports that all insurance companies that sell homeowners' insurance are required to offer earthquake insurance to its customers. In California, most standard homeowners' insurance policies do not cover earthquake damage.
RENTERS INSURANCE
Renter's insurance, also known as tenant's insurance, is an insurance policy that covers damages and liability that result from renting a piece of property. Renter's insurance is meant to protect tenants from loss of personal property. If an apartment complex burns down, or items are stolen, renter's insurance can provide money for the value of the items lost. The types of items that can be recovered typically include furniture, appliances, electronics and clothing among others. Another thing renter's insurance can protect against is liability related to the rented property. Say a cable man comes to install a digital box in your apartment and something you have laying around causes him to trip an injure himself; liability insurance would pay for damages if he tried to sue you.
Whether renter's insurance is worth buying comes down to specific renters and apartment complexes. Renter's insurance is relatively cheap, often between $15 and $30 per month, which can be well worth the peace of mind that your possessions and liabilities are taken care of.
